Sarah JensenSarah Jensen

Narrow Vein Mining Methods and Geologic Grade-Control on the JM-Reef Pd/Pt DepositNarrow Vein Mining Methods and Geologic Grade-Control on the JM-Reef Pd/Pt Deposit

J-M Reef PGM ProductionJ-M Reef PGM ProductionPd/Pt (3.4:1) are our primary target elements, hosted as

sulfide mineralization

Byproducts: rhodium, copper, nickel, gold, silver

Worldwide PGM ProductionWorldwide PGM Production

SMC is the only U.S. producer of PGMs and the largest primary producer outside of South Africa and the Russian Federation

34g/ton ~ 1oz/ton

Comparative PGM Ore GradesComparative PGM Ore GradesThe J-M Reef is by far the highest grade PGM deposit of any known in the world!

Stillwater Complex EmplacementThe 2.7by differentiated stratiform mafic to ultramafic intrusive igneous body was emplaced 6-9 miles under sedimentary rocks, resulting in a sub-horizontal inward-dipping cumulate layered lopolith

GENERALIZED STRATIGRAPHIC COLUMN STILLWATER COMPLEX

GENERALIZED STRATIGRAPHIC COLUMN STILLWATER COMPLEX

The ore zone is a very

thin layer within a

thick package

of rocks

Original Stillwater ComplexOriginal Stillwater Complex

Beartooth Mountains Uplift: Sequence 1Beartooth Mountains Uplift: Sequence 1

Beartooth Mountains Uplift: Sequence 2Beartooth Mountains Uplift: Sequence 2

Beartooth Master Thrust

& Splay off Thrust

Stillwater Complex Mining HistoryStillwater Complex Mining History

Nickel/Copper deposits

About 1883 by Skookum Joe Anderson, but may have been as early as 1860’s

Chromite deposits

About 1890, with first test mining at Little Rocky Creek (Benbow) by T.C. Benbow in 1905

Palladium/Platinum deposits

Pt/Pd-bearing minerals in 1936, but J-M Reef economically mineable layer in 1973 by Johns-Manville

Nickel/Copper deposits

About 1883 by Skookum Joe Anderson, but may have been as early as 1860’s

Chromite deposits

About 1890, with first test mining at Little Rocky Creek (Benbow) by T.C. Benbow in 1905

Palladium/Platinum deposits

Pt/Pd-bearing minerals in 1936, but J-M Reef economically mineable layer in 1973 by Johns-Manville

Benbow Chromite MiningBenbow Chromite Mining

Benbow Chromite Mine Present DayBenbow Chromite Mine Present Day

Mouat Mine-1943Mouat Mine-1943

Moat Mine: Present DayMoat Mine: Present Day

Lake Camp at the Mouat MineLake Camp at the Mouat Mine

Lake Camp Present DayLake Camp Present Day

J-M Reef MineralogyJ-M Reef Mineralogy

Major Minerals

Plagioclase feldspar (bytownite)

Orthopyroxene (bronzite)

Clinopyroxene (augite)

Olivine (chrysolite serpentinized with magnetite)

Minor Minerals

Sulfides: chalcopyrite pentlandite pyrrhotite Associated Pd/Pt sulfides: braggite cooperite vysotskite moncheite

Phlogopite

Chromite

Major Minerals

Plagioclase feldspar (bytownite)

Orthopyroxene (bronzite)

Clinopyroxene (augite)

Olivine (chrysolite serpentinized with magnetite)

Minor Minerals

Sulfides: chalcopyrite pentlandite pyrrhotite Associated Pd/Pt sulfides: braggite cooperite vysotskite moncheite

Phlogopite

Chromite

PGM Ore MineralsPGM Ore Minerals

PdSource

Pt Source

Mineral Formula Notes

80% - Pentlandite (Fe, Ni)9 S8 ¾ of the Palladium is in solid solution with Pentlandite

15% - Vysotskite (Pd, Ni, Pt) S 2/3 of the Platinum and some of the Palladium is hosted as sulfides

65% Braggite (Pt, Pd, Ni) S

Cooperite (Pt, Pd, Ni) S

- 25% Isoferroplatinum PtFe3 ¼ of the Platinum is in a metallic alloy

5% 10% Moncheite (Pt, Pd) (Te, Bi)2 Some Platinum and Palladium are hosted as Telluride

PGMs in base-metal pathfinder sulfides

J-M Reef

Primary Drift

Stope Mining

Diamond Drilling, Definition of the OreDiamond Drilling, Definition of the Ore

Extensive Diamond Drilling!

300’ vertical spacing

Looking NW

J-M ReefPerformed at 50’ centers along the FWL

Looking West

Narrow Vein Mining MethodsNarrow Vein Mining Methods

~45 DegreeDipping Contact

8’ 6.5’

~90 DegreeDipping Contact

Longsection View & Related Mining WidthsLongsection View & Related Mining Widths

6.5’

~60 DegreeDipping Contact

Ramp and Fill: Overhand & UnderhandRamp and Fill: Overhand & Underhand

Underhand Ramp and Fill: cross sectionUnderhand Ramp and Fill: cross section

Jumbo Single Boom DrillJumbo Single Boom Drill

For ramp and fill & access tunnels

Captive Stope – Ladder AccessCaptive Stope – Ladder Access

Captive Stope – Alimak AccessCaptive Stope – Alimak Access

Jackleg: For drilling narrow headings & bolting Jackleg: For drilling narrow headings & bolting

Sub-level MiningSub-level Mining

Sub-level – Pillar ExtractionSub-level – Pillar Extraction

Sub-level Longhole DrillingSub-level Longhole Drilling

Geologic Grade-ControlGeologic Grade-ControlSMC has utilized geologic grade-control since continuous production commenced in October 1985

Geology Grade-Control Mark upGeology Grade-Control Mark upKeep mining on reef and in ore

Maximize ounce production

Minimize dilution & deletion

Advise production & engineering

on stope planning and geologic

issues

Communicate with the

production department to ensure

accurate muck handling

Increase Proven Reserve

Provide ore width information for

contracts

Keep mining on reef and in ore

Maximize ounce production

Minimize dilution & deletion

Advise production & engineering

on stope planning and geologic

issues

Communicate with the

production department to ensure

accurate muck handling

Increase Proven Reserve

Provide ore width information for

contracts

Geology Markup: 41W14,500 A3 eastGeology Markup: 41W14,500 A3 east

Hanging Wall Contact

Sulfides

Ore Zone

Lower Off-Shaft: 23W7000 Lower Off-Shaft: 23W7000

Upper Offshaft: 35W11000 Upper Offshaft: 35W11000

Upper West: 50W18000A3 Upper West: 50W18000A3

Dilution and Deletion at the Face Dilution and Deletion at the Face

Dip

Offshaft = 60˚N

Upperwest = 45˚N

East Side = 70˚S

Cuts are ~ 10’ High

BallroomsBallrooms

From 1 Ton of Ore: 40 lb (2%) is concentrated, producing ½ ounce of PGMFrom 1 Ton of Ore: 40 lb (2%) is concentrated, producing ½ ounce of PGM

1 TON OF ORE mined and sent to the

mill

3 GALLONS OF CONCENTRATE sent to process

= ½ OUNCE of PGM

(½ of this coin)